Walt Disney to Buy Marvel in $4 Billion Deal

Walt Disney Co. said it plans to buy Marvel Entertainment Inc for $4 billion in a deal that would add characters like Iron Man, Spider-Man, and the Fantastic Four to its entertainment empire. Marvel shar es last traded at $48.40, up 25.2 percent from their closing price on Friday. Disney shares closed at $26.84 on Friday, Reuters informs.

The acquisition would give Disney access to a library of more than 5,000 characters -- several of whom have inspired major films for other Hollywood studios. Marvel, meanwhile, gains the clout of Disney's ability to take a popular character and make money on it through films, television and licensed merchandise.

"We believe that adding Marvel to Disney’s unique portfolio of brands provides significant opportunities for long-term growth and value creation," said Disney President and Chief Executive Robert A. Iger, Los Angeles Times informs.

Disney said Marvel shareholders will receive $30 per share in cash, plus 0.745 Disney shares for every Marvel share they own. That values each Marvel share at $50 based on Friday's closing stock prices.